Digital Cinema as Disruptive Technology

The distribution and exhibition of motion pictures are at a crossroads. Ever since the medium was invented in the 1890s the “picture” has been brought to the spectator in the form of photochemical images stored on strips of celluloid film passed in intermittent motion through a projector. Now, at the beginning of the 21st century, an entirely new method has emerged, using digitally stored data in place of film and barely needing any physical support other than a computerised file. This opens an intriguing portfolio of revenue-generating opportunities for the movie exhibitor. This chapter will give an overview of current developments in digital cinema (d-cinema). It will examine potential new business models in an industry wedded to the analogue process. The authors will consider the strategies of companies at the forefront of the technology; implications associated with the change; and how different territories might adapt in order to accommodate this transition.